After selling off its device and services division to Microsoft, Nokia has started the month of May with an announcement: it is launching a fund that will invest $100 million in connected car startups.
The ‘Connected Car Fund’ fund will be managed by Nokia Growth Partners (NGP) and “will identify and invest in companies whose innovations will be important for a world of connected and intelligent vehicles,” the Finish company says.
It will be aligned with Nokia’s HERE mapping division which it didn’t sell to Microsoft, with the aim of finding companies and technology that “support the growth of the ecosystem around HERE’s mapping and location products and services.”
“For the last few years there has been a surge in innovation that has brought technological advances leading to safer, cleaner, increasingly connected, intelligent and more affordable vehicles. Vehicles are becoming a new platform for technology adoption very similar to phones or tablets,” said Paul Asel, Partner at Nokia Growth Partners.
Apple launched its ‘CarPlay’ solution, a rebranded take on its ‘iOS in the Car’ initiative, last month after it partnered with Ferrari, Mercedes Benz and Volvo. The company’s mapping service plays a key part in the solution, which will include aftermarket installations.
Google is also in the race, and it announced the Open Automotive Alliance in January. The group is designed to “accelerate” innovation in the automotive space and it counts Audi, GM, Honda, Hyundai and Nvidia as early members.